Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

German gas rationing would hit metals, chemicals hardest -ZEW study

Published 07/21/2022, 05:38 AM
Updated 07/21/2022, 05:40 AM
© Reuters. FILE PHOTO: The Astora natural gas depot, which is the largest natural gas storage in Western Europe, is pictured in Rehden, Germany, March 16, 2022. Astora is part of the Gazprom Germania Group. REUTERS/Fabian Bimmer/File Photo

BERLIN (Reuters) - Gas rationing in Germany would impact the metal production and processing, chemical and paper industries most severely, according to a study on Thursday, amid heightened uncertainty over Russian supply via the key Nord Stream 1 pipeline.

Limited gas supply could also impact less energy-intensive but economically important sectors due to a lack of upstream products, said the ZEW economic institute, which compiled the analysis on behalf of the Foundation for Family Businesses in Germany.

The textiles and ceramics industries are very dependent on gas, the institute added.

"If their supplies fail to materialize, even industries with high value added quickly find themselves in distress," said the head of the foundation, Rainer Kirchdoerfer.

He called on Germany to retain its status as a location for supplier industries, adding: "With creeping de-industrialization, we would only replace the dependence on gas with a new dependence on other imported products."

Data published by the Federal Statistical Office on Thursday underscored Germany's reliance on natural gas, which was a major energy source for industry in 2020, when it accounted for 31.2% of consumption.

In 2021, 95% of natural gas in Germany was imported, the office added.

Germany has been scrambling to find alternatives to Russian energy imports since the war broke out in Ukraine on Feb. 24, particularly in terms of gas, deliveries of which have been throttled by Russia in recent weeks.

The gas crunch came into sharper focus on July 11, when Nord Stream 1 flows dried up due to scheduled maintenance work.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

This work ended on Thursday, when physical flows through the Russian-German pipeline could return to a pre-maintenance level of 40% capacity, according to the network regulator.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.